Machine-extracted (OCR) from the official document — formatting is approximate; the official copy governs.
PROPERTY DISPOSITION GUIDELINES
ARTICLE 1. DEFINITIONS
For the purposes of these Guidelines, unless a different meaning is required by the
context:
Section 1.1 "Contracting Officer" shall mean an officer of the Agency who is
responsible for the disposition of property.
Section 1.2 "Dispose" or "disposal" shall mean transfer of title or any other beneficial
interest in personal or real property in accordance with Section 2897 of the Public Authorities
Law.
Section 1.3 "Property" shall mean personal property in excess of $5,000 in value, real
property, and any inchoate or other interest in such property, to the extent that such interest may
be conveyed to another person for any purpose, excluding an interest securing a loan or other
financial obligation of another party.
ARTICLE 2. DUTIES
Section 2.1 The Agency shall:
(a) maintain adequate inventory controls and accountability systems for all
property under its control;
(b) periodically inventory such property to determine which property shall be
disposed of;
(c) publish, not less frequently than annually, a report listing all real property
of the Agency. Such report shall include a list and full description of all real and personal property
disposed of during such period. The report shall contain the price received by the Agency and
the name of the purchaser for all such property sold by the Agency during such period;
(d) transfer or dispose of such property in accordance with Section 2897 of the
Public Authorities Law.
(e) review and approve these guidelines annually and file with the
Comptroller, the director of the budget, the commissioner of general services, the legislature and
the authorities budget office a copy of the most recently reviewed and approved guidelines by
March 31 of each year.
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ARTICLE 3 DISPOSITION OF PROPERTY
Section 3.1 Supervision and Direction. Except as otherwise provided herein, the
Contracting Officer shall have supervision and direction over the disposition of property of the
Agency. The Agency shall have the right to dispose of its property for any valid corporate
purpose.
Section 3.2 Custody and Control. The custody and control of the property of the
Agency, pending its disposition, and the disposal of such property, shall be performed by the
Agency or by the Commissioner of General Services when so authorized under this section.
Section 3.3 Method of Disposition. Subject to Section 2896 of the Public Authorities
Law, the Agency may dispose of its property for not less than the fair market value of such
property by sale, exchange, or transfer, for cash, credit, or other property, with or without
warranty, and upon such other terms and conditions as the Contracting Officer deems proper,
and it may execute such documents for the transfer of title or other interest in property and take
such other action as it deems necessary or proper to dispose of such property under the provisions
of this section. Provided, however, that no disposition of real property or any interest in real
property, shall be made unless an appraisal of the value of such property has been made by an
independent appraiser and included in the record of the transaction, and, provided further, that
no disposition of any other property, which because of its unique nature or the unique
circumstances of the proposed transaction is not readily valued by reference to an active market
for similar property, shall be made without a similar appraisal.
Section 3.4 Sales by the Commissioner of General Services. When it shall be deemed
advantageous to the State of New York, the Agency may enter into an agreement with the
Commissioner of General Services where under such Commissioner may dispose of property of
the Agency under terms and conditions agreed to by the Agency and the Commissioner of
General Services. In disposing of any such property of the Agency, the Commissioner of General
Services shall be bound by the terms of this section and references to the Contracting Officer shall
be deemed to refer to such Commissioner.
Section 3.5 Validity of Deed, Bill of Sale, Lease, or Other Instrument. A deed, bill of
sale, lease, or other instrument executed by or on behalf of the Agency, purporting to transfer title
or any other interest in property of the Agency under these Guidelines shall be conclusive
evidence of compliance with the provisions hereof insofar as concerns title or other interest of
any bona fide grantee or transferee who has given valuable consideration for such title or other
interest and has not received actual or constructive notice of lack of such compliance prior to the
closing.
Section 3.6 Bids for Disposal; Advertising; Procedure; Disposal by Negotiation;
Explanatory Statement.
(a) All disposals or contracts for disposal of property of the Agency made or authorized
by the Contracting Officer shall be made after publicly advertising for bids except as provided in
Section 3.6(c) and (f).
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(b) Whenever public advertising for bids is required under Section 3.6(a):
(i) the advertisement for bids shall be made at such time prior to the disposal or
contract, through such methods, and on such terms and conditions as shall permit full and free
competition consistent with the value and nature of the property.
(ii) all bids shall be publicly disclosed at the time and place stated in the
advertisement; and
(iii) the award shall be made with reasonable promptness by notice to the
responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous
to the state, price and other factors considered; provided, that all bids may be rejected when it is
in the public interest to do so.
(c) Disposals and contracts for disposal of property may be negotiated or made by public
auction without regard to Section 3.6(a) and (b) but subject to obtaining such competition as is
feasible under the circumstances, if:
(i) the personal property involved has qualities separate from the utilitarian
purpose of such property, such as artistic quality, antiquity, historical significance, rarity, or other
quality of similar effect, that would tend to increase its value, or if the personal property is to be
sold in such quantity that, if it were disposed of under Section 3.6(a) and (b), would adversely
affect the state or local market for such property, and the estimated fair market value of such
property and other satisfactory terms of disposal can be obtained by negotiation;
(ii) the fair market value of the property does not exceed fifteen thousand dollars
($15,000.00);
(iii) bid prices after advertising therefore are not reasonable, either as to all or some
part of the property, or have not been independently arrived at in open competition;
(iv) the disposal will be to the state or any political subdivision, and the estimated
fair market value of the property and other satisfactory terms of disposal are obtained by
negotiation;
(v) under those circumstances permitted by Section 3.7 hereof; or
(vi) such action is otherwise authorized by law.
(d) (i) An explanatory statement shall be prepared of the circumstances of each
disposal by negotiation of:
(A) any personal property which has an estimated fair market value in
excess of $15,000;
(B) any real property that has an estimated fair market value in excess of
$100,000, except that any real property disposed of by lease or exchange shall only be subject to
clauses (C) and (D) of this subparagraph;
(C) any real property disposed of by lease if the estimated annual rent over
the term of the lease is in excess of $15,000; or
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(D) any real property or real and related personal property disposed of by
exchange, regardless of value, or any property any part of the consideration for which is real
property.
(ii) Each such statement shall be transmitted to the persons entitled to receive
copies of the report required under Section 2896 of the Public Authorities Law not less than 90
days in advance of such disposal and a copy thereof shall be preserved in the files of the Agency.
Section 3.7. Disposal of property for less than fair market value.
(a) No asset owned, leased or otherwise in the control of the Agency may be sold, leased,
or otherwise alienated for less than its fair market value except if:
(i) the transferee is a government or other public entity, and the terms and
conditions of the transfer require that the ownership and use of the asset will remain with the
government or any other public entity;
(ii) the purpose of the transfer is within the purpose, mission or governing statute
of the Agency; or
(iii) in the event the Agency seeks to transfer an asset for less than its fair market
value to other than a governmental entity, which disposal would not be consistent with the
Agency’s mission, purpose or governing statutes, the Agency shall provide written notification
thereof to the governor, the speaker of the assembly, and the temporary president of the senate,
and such proposed transfer shall be subject to denial by the governor, the senate, or the assembly.
(b) In the event a below fair market value asset transfer is proposed, the following
information must be provided to the Agency board and the public:
(i) a full description of the asset;
(ii) an appraisal of the fair market value of the asset and any other information
establishing the fair market value sought by the board;
(iii) a description of the purpose of the transfer, and a reasonable statement of the
kind and amount of the benefit to the public resulting from the transfer, including but not limited
to the kind, number, location, wages or salaries of jobs created or preserved as required by the
transfer, the benefits, if any, to the communities in which the asset is situated as are required by
the transfer;
(iv) a statement of the value to be received compared to the fair market value;
(v) the names of any private parties participating in the transfer, and if different
than the statement required by subparagraph (iv) of this paragraph, a statement of the value to
the private party; and
(vi) the names of other private parties who have made an offer for such asset, the
value offered, and the purpose for which the asset was sought to be used.
(c) Before approving the disposal of any property for less than fair market value, the
Agency board shall consider the information described in paragraph b of this Section 3.7 and
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make a written determination that there is no reasonable alternative to the proposed below-
market transfer that would achieve the same purpose of such transfer.
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